Amazon Web Services (AWS), a division of Amazon (AMZN), has reportedly halted certain international leasing negotiations related to colocation. While the extent of this pause remains unclear, it follows indications of a temporary slowdown in hyperscale leasing from major players such as AWS and Microsoft (MSFT), according to industry sources.
The reasons behind AWS's decision to scale back these lease discussions aren't fully understood. It's uncertain whether this development signals a significant issue or is part of the typical fluctuations in the hyperscale sector. Despite AWS and Microsoft's reduced leasing activity, other prominent hyperscalers including Meta (META), Google (GOOGL), and Oracle (ORCL), as well as Nvidia (NVDA), continue to maintain high levels of activity in this domain.
In contrast to the current leasing slowdown, AWS is expanding its strategic partnership with Marvell Technology (MRVL) as part of a five-year collaboration plan announced in December 2024. This agreement extends across multiple AWS products and leverages AWS's cloud infrastructure. Additionally, companies such as AMD (AMD, Financial), Broadcom (AVGO), Qualcomm (QCOM), Dell Technologies (DELL), and HP Enterprise (HPE) remain linked to AI and data center expenditures, indicating continued engagement in these technology-driven sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for Advanced Micro Devices Inc (AMD, Financial) is $141.22 with a high estimate of $225.00 and a low estimate of $90.00. The average target implies an upside of 68.21% from the current price of $83.96. More detailed estimate data can be found on the Advanced Micro Devices Inc (AMD) Forecast page.
Based on the consensus recommendation from 50 brokerage firms, Advanced Micro Devices Inc's (AMD, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc (AMD, Financial) in one year is $162.68, suggesting a upside of 93.77% from the current price of $83.955. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Advanced Micro Devices Inc (AMD) Summary page.
